Dagabond Bored Member Administrator 35,722 Member For: 22y 3m 12d Gender: Male Location: Dé·jà vu Posted 19/08/06 07:19 AM Share Posted 19/08/06 07:19 AM Ajax Fastners a major manufacturer of nuts and bolts for most of the automotive industry and which has been in operation for the last 70 years look's set to close down.I'm realy begining to wonder whether we're all heading towards a third world country when things like this happen, it all has an onflow effect for everyone that has to end somewhere and the view I'm seeing aint pretty.Breakdown brings more car troubleIan Porter, The Age, 08/08/06Uncertainty again surrounds the faltering car industry after the country's biggest supplier of automotive fasteners was placed in administration. Global Engineered Fasteners is the second former subsidiary of the troubled Nylex group to threaten car production in the space of two weeks and highlights the pressures on the sector: raw material prices and falling volume.Coincidentally, Nylex yesterday reported another profit downgrade for the year that ended five weeks ago. However, directors at the same time revealed the company had been given yet another lease on life after financiers agreed to underwrite a $40 million capital raising.Global Engineered Fasteners supplies GM Holden, Pacifica Group and Textron, among others, with nuts and bolts for engines and suspension parts as well as fasteners for other parts of a vehicle. It was formerly known as Ajax Fasteners.GEF ran into trouble barely a week after Huon Corporation was hit by a strike after claiming it could not pay workers their retrenchment entitlements. Huon owns Empire Rubber and Mills Elastomers, which Nylex sold in November 2005.GEF chairman Peter Allen said the company had been unable to pass on a 70 per cent increase in the cost of steel to its customers.A 20 per cent slump in Australian car production and a 10 per cent appreciation in the value of the Australian dollar had compounded the company's problems, he said.GEF had held intensive talks with major customers last week but Mr Allen said that, while progress was made, final agreement had not been reached.He said GEF was in the middle of a restructuring program, which had already absorbed $9 million of fresh capital, and under which much of the company's production would be transferred overseas from its Braeside site in Melbourne. A further investment of $5 million would be made if agreement could be reached with customers.Nylex reported that its largest shareholder, Seven Network chief Kerry Stokes, would underwrite a $20 million rights issue through his Garden Park Equities. The issue price will be 4.3¢ a share.A $20 million issue of convertible notes would be underwritten by Singapore-based Harmony Capital Partners. The notes will cost 4.6¢ each and carry a 10 per cent coupon rate.Stephen Longley and David McEvoy, of PricewaterhouseCoopers, have been appointed administrators to GEF. Nylex shares eased 0.4¢ to 4.6¢. Ajax car part workers face povertyAAP, 11/08/06Almost 200 workers at car part manufacturer Ajax Fasteners face immediate and dire poverty if the company is liquidated, a union has warned. Almost 200 workers at car part manufacturer Ajax Fasteners face immediate and dire poverty if the company is liquidated, a union has warned.Leaders of the Australian Manufacturing Workers Union (AMWU), the Australian Workers Union (AWU) and the National Union of Workers (NUW) met with the administrators of Ajax on behalf of 189 workers on Friday.AMWU assistant secretary Steve Dargavel said a short-term proposition had been negotiated averting liquidation of the factory, a division of Global Engineered Fasteners (GEF) based in suburban Braeside.He said the workers risked losing their jobs and their entitlements if the company went into liquidation."These are low pay production workers who live from pay packet to pay packet," Mr Dargavel said."If they're made redundant it will mean immediate and dire poverty for families. A lot of workers look at their entitlements as their savings."Ajax currently supplies automotive and industrial fasteners to Ford, General Motors Holden, Toyota and Mitsubishi.It manufactures engineered fasteners for use in engine, driveline, vehicle assembly and brake systems.The four car companies attended the meeting and are likely to attend a creditors meeting on Monday."We're trying to negotiate a package which ensures the continuation of jobs in this country," Mr Dargavel said.He said if production went offshore and the workers lost their jobs, they also risked losing their entitlement to annual leave, long service leave, redundancy and pay in lieu of notice.Earlier this week, GEF chairman Peter Allen said the main reason for having to appoint voluntary administrators was Ajax's inability to come to satisfactory pricing and supply agreements with a number of its major automotive customers.In July, another automotive supplier, Huon Corporation, was placed in the hands of administrators SimsPartners.Huon Corporation's factories - Empire Rubber in Bendigo, FRN in Frankston and Mills Elastomers in Dandenong - make air intake hoses, steering column covers, rubber seals and fuel filler shields.After reading it in the paper I went looking for some articles and information as to whats going on one of the links I came across was from the dpc not sure as to the date but it looks to be back in the Kennett Ministry days:http://www.dpc.vic.gov.au/domino/Web_Notes...Document&Click=2nd Kennett MinistryNEWS RELEASEFrom the Office of the Minister for Industry, Science and TechnologyThursday, 6 FebruaryAJAX FASTENERS BREAKS GROUND AT BRAESIDE SITEThe Minister for Industry, Science and Technology, Mark Birrell, today praised Ajax Fasteners commitment to its future in Victoria by investing $44 million in establishing a new world class manufacturing operation at Braeside.Mr Birrell, who celebrated the commencement of work at the Braeside site in a ground breaking ceremony today, described the investment as being crucial to Ajax Fasteners long-term strategy to maintain and grow its dominance in the Australian market and create new opportunities for itself, particularly in South East Asian markets.This new plant, once it is fully operational, will not only enable Ajax to double its present capacity, but also allow it to produce product more efficiently, Mr Birrell said.Ajax Fasteners commitment to achieving worlds best practice in its Australian operation here at Braeside will place it in a very competitive position to claim new business, particularly in the high growth Asia Pacific region, where there has been substantial growth in mechanical fasteners.Mr Birrell said that as part of the Victorian Governments strategy to encourage investment into the State, he had established a Task Force within Business Victoria to work with Ajax Fasteners and State Government agencies to achieve the lowest possible ongoing business costs.The construction phase for the new plant is scheduled for completion in July.Ajax Fasteners, which has been operating in Victoria for more than 70 years, is Australias foremost producer of speciality fasteners, nuts, bolts and screws, primarily for the building, engineering and automotive industries.Another announcement from Deakin University:http://www.deakin.edu.au/engineering/research/ammp/?64An edjucational opportunity out the window with yet another onflow effect. 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SHOCK Team Grandpa Donating Members 1,921 Member For: 18y 9m 27d Gender: Male Location: Hunter Valley Posted 19/08/06 07:21 AM Share Posted 19/08/06 07:21 AM China strikes again.... Link to comment Share on other sites More sharing options...
Damo Donating Members 403 Member For: 21y 3m 8d Gender: Male Location: Sydney Posted 19/08/06 07:35 AM Share Posted 19/08/06 07:35 AM China strikes again....Yep. And China will be too expensive soon with higher demand meaning product quality has to improve and costs eventually rise.Where to next? Link to comment Share on other sites More sharing options...
SHOCK Team Grandpa Donating Members 1,921 Member For: 18y 9m 27d Gender: Male Location: Hunter Valley Posted 19/08/06 07:41 AM Share Posted 19/08/06 07:41 AM China strikes again....Yep. And China will be too expensive soon with higher demand meaning product quality has to improve and costs eventually rise.Where to next?←India...it is currently on the same level as China Link to comment Share on other sites More sharing options...
Lumpen Poison Fish. Poison Fish. TASTY FISH!!! Donating Members 5,181 Member For: 21y 11m 11d Gender: Male Location: The Bogan Shire Posted 19/08/06 07:42 AM Share Posted 19/08/06 07:42 AM China strikes again....Yep. And China will be too expensive soon with higher demand meaning product quality has to improve and costs eventually rise.Where to next?←The way Australia is going, probably back here. Australia, first world to third world in 100 years Lumpy Link to comment Share on other sites More sharing options...
phantomchic Just because it is, doesn't mean it should be..... Lifetime Members 14,092 Member For: 20y 5m 14d Gender: Female Location: Noosa QLD Posted 19/08/06 07:46 AM Share Posted 19/08/06 07:46 AM There are changes going on everywhere that are out of our control, I guess we just have to go with the flowshaz Link to comment Share on other sites More sharing options...
saleen Big Gun Donating Members 4,170 Member For: 22y 4m 16d Gender: Male Location: NSW Posted 19/08/06 07:52 AM Share Posted 19/08/06 07:52 AM I saw all this on the news last night. The report was mainly based around Holden's new VE being effected and then other manufacturers down the track. How hard is it to make $$$ out of nuts and bolts? Is it the economy? Is it countries like China undercutting? I'm sure it's not the Taliban. Link to comment Share on other sites More sharing options...
Damo Donating Members 403 Member For: 21y 3m 8d Gender: Male Location: Sydney Posted 19/08/06 07:52 AM Share Posted 19/08/06 07:52 AM There are changes going on everywhere that are out of our control, I guess we just have to go with the flowshaz The ironic thing is that it's our current quality of life that is going to end up costing us our quality of life. More rights in the workplace, more money, overtime, allowances for everything, blah blah blah. Everything is too expensive in Australia - starting with labour.And I was originally going to say India would be next, but changed my post. Link to comment Share on other sites More sharing options...
Damo Donating Members 403 Member For: 21y 3m 8d Gender: Male Location: Sydney Posted 19/08/06 07:58 AM Share Posted 19/08/06 07:58 AM I saw all this on the news last night. The report was mainly based around Holden's new VE being effected and then other manufacturers down the track. How hard is it to make $$$ out of nuts and bolts? Is it the economy? Is it countries like China undercutting? I'm sure it's not the Taliban.Cost of living in China is minescule compared to COL in Australia. Their labour costs less, they get the materials in bulk and away they go. Started off crap quality now China's just getting better and better. Link to comment Share on other sites More sharing options...
RHR BOOST Moderating Team 5,698 Member For: 21y 5m 21d Gender: Male Location: Southern Highlands NSW Posted 19/08/06 08:18 AM Share Posted 19/08/06 08:18 AM Go austrailia keep going down the sh!tter...What about the glass in the Ba/f falcons coming from china as well.. I think it was pilkinton who lost out there.. Link to comment Share on other sites More sharing options...
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